Question

After firm A acquired firm B, it raised the prices for the goods produced by both firms. This can increase profits if those goods are

Answer 1

Answer: substitute

Explanation:

After firm A acquired firm B, it raised the prices for the goods produced by both firms. This can increase profits if those goods are substitutes.

Substitute goods are the goods that serve thesame functions and one can be used to replace the other one. Since both goods produced are substitutes, that means when there's price increase, even though consumers shift from one good to another, there's still rise in price which will increase profits